This Notice does not form a part of your insurance contract. No coverage is provided by this Notice, nor can it be construed to replace any provisions of your policy (including any endorsements). If there is any conflict between this Notice and your policy (including any endorsements), the provisions of your policy (including any endorsements) shall prevail.
This Notice is in response to a call for special report, pursuant to Section 308 of the New York Insurance Law, with respect to Business Interruption insurance (often referred to as Business Income (BI) and/or Extra Expense (EE)) and related coverages, with respect to the novel Coronavirus (COVID-19) pandemic.
The following provisions of your policy may affect coverage with respect to a Coronavirus. However, any actual determination of coverage depends on the relevant facts and circumstances of each individual matter. Carefully read your entire policy, including any endorsements attached to your policy. If you have questions, please contact your producer, agent or insurer.
The following are excerpts from your policy under COMMERCIAL OUTPUT PROGRAM, INCOME COVERAGE PART (form CO10010402) as respect BI/EE exposures, with phrases that are defined in your policy in quotation marks:
“We” provide the following coverage unless the coverage is excluded or subject to limitations.
“We” provide the coverages described below (Earnings and Extra Expense) during the “restoration period” when “your” “business” is necessarily wholly or partially interrupted by direct physical loss of or damage to property at a “covered location” or in the open (or in vehicles) within 1,000 feet thereof as a result of a covered peril.
INCOME COVERAGE EXTENSIONS:
1. Interruption by Civil Authority — “We” extend “your” coverage for earnings and extra expense to include loss sustained while access to “covered locations” or a “dependent location” is specifically denied by an order of civil authority. This order must be a result of direct physical loss of or damage to property, other than at a “covered location” and must be caused by a covered peril. Unless otherwise indicated on the “schedule of coverages”, this Income Coverage Extension is limited to 30 consecutive days from the date of the order.
SUPPLEMENTAL INCOME COVERAGES:
2. Dependent Locations — Coverage for earnings and/or extra expense is extended to loss of earnings or extra expenses that “you” incur during the “restoration period” when “your” “business” is interrupted by direct physical loss of or damage, caused by a covered peril, to property at a “dependent location”.
The most “we” pay in any one occurrence under this Supplemental Income Coverage is $100,000.
The following are excerpts from your policy under COMMERCIAL OUTPUT PROGRAM, PROPERTY COVERAGE PART (form CO10001012) as respect physical damage exposures, with phrases that are defined in your policy in quotation marks:
1. “We” do not pay for loss or damage caused directly or indirectly by one or more of the following excluded causes or events. Such loss or damage is excluded regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the
same time as, or after the excluded causes or events.
c. Civil Authority — “We” do not pay for loss caused by order of any civil authority, including seizure, confiscation, destruction, or quarantine of property. “We” do cover loss resulting from acts of destruction by the civil authority to prevent the spread of fire, unless the fire is caused by a peril excluded under this coverage.
Your policy also contains a Virus or Bacteria Exclusion (AAIS form CL 0700 10 06) that applies regardless of whether there is any BI/EE loss. This exclusion explicitly excludes coverage for any and all Virus or Bacteria losses under your policy (regardless of whether there is any BI/EE loss) as follows:
Definitions Amended —
When “fungus” is a defined “term”, the definition of “fungus” is amended to delete reference to a bacterium.
When “fungus or related perils” is a defined “term”, the definition of “fungus or related perils” is amended to delete reference to a bacterium.
The additional exclusion set forth below applies to all coverages, coverage extensions, supplemental coverages, optional coverages, and endorsements that are provided by the policy to which this endorsement is attached, including, but not limited to, those that provide coverage for property, earnings, extra expense, or interruption by civil authority.
1. The following exclusion is added under Perils Excluded, item 1:
Virus or Bacteria —
“We” do not pay for loss, cost, or expense caused by, resulting from, or relating to any virus, bacterium, or other microorganism that causes disease, illness, or physical distress or that is capable of causing disease, illness, or physical distress.
This exclusion applies to, but is not limited to, any loss, cost, or expense as a result of:
a. any contamination by any virus, bacterium, or other microorganism; or
b. any denial of access to property because of any virus, bacterium, or other microorganism.
2. Superseded Exclusions –– The Virus or Bacteria exclusion set forth by this endorsement supersedes the “terms” of any other exclusions referring to “pollutants” or to contamination with respect to any loss, cost, or expense caused by, resulting from, or relating to any virus, bacterium, or other microorganism that causes disease, illness, or physical distress or that is capable of causing disease, illness, or physical distress.
Other Terms Remain in Effect —
The “terms” of this endorsement, whether or not applicable to any loss, cost, or expense, cannot be construed to provide coverage for a loss, cost, or expense that would otherwise be excluded under the policy to which this endorsement is attached.
Greg Wolyniec – Chief Executive Officer
Brian Green – Secretary